NSSF Raises Monthly Deductions in 2026 as Year 4 Rates Take Effect – Full Details
Share
Kenyan workers will now see higher National Social Security Fund (NSSF) deductions starting February 2026, following the implementation of Year 4 contribution rates under the NSSF Act, Cap 258.
In a notice to employers dated Thursday, February 12, 2026, NSSFconfirmed that the Year 3 contribution phase ended on January 31, 2026, and the new rates officially took effect in February 2026.
The Fund said the implementation of the Act is being carried out progressively in phases as provided for under the Third Schedule of the NSSF Act.
“The implementation of the NSSF Act is progressively being done in phases. As you are aware, according to the Third Schedule of NSSF Act Cap 258, the Implementation of Year 3 contribution rates ended on 31 January 2026,” read part of the notice.
NSSF 2026 Contribution Changes Explained
NSSF further directed all employers to begin deducting and remitting contributions under the Year 4 schedule as prescribed.
Below is a table outlining the revised Year 4 (2026) NSSF contribution rates, which follow the phased implementation of the NSSF Act Cap 258.
Year 4 NSSF Contribution Rates (2026)
| Category | Amount in Kshs. |
| Lower Earning Limit (Tier 1) | 9,000.00 |
| Contribution on Lower Limit (6% of lower limit) | |
| Maximum Contribution by Employee | 540.00 |
| Maximum Contribution by Employer | 540.00 |
| Total Maximum Tier 1 Contributions | 1,080.00 |
| Upper Earning Limit (Tier 2) | 108,000.00 |
| Pensionable Earnings (Upper limit less lower limit) | 99,000.00 |
| Maximum Contribution by Employee | 5,940.00 |
| Maximum Contribution by Employer | 5,940.00 |
| Total Maximum Tier 2 Contributions | 11,880.00 |
| Maximum Total Monthly Contribution (Per Employee) | 12,960.00 |
Meanwhile, the Fund announced that it had declared a 17% net interest rate for members for the 2024/2025 financial year.
Also Read: NSSF Announces Highest Ever Return for Members as Contributions Hit Ksh 84 Billion
The interest was approved during the 8th Annual General Meeting held on February 6, 2026.
Managing Trustee and CEO David Koross encouraged members to continue saving with NSSF to enhance their retirement benefits.
About the Act
The National Social Security Fund Act, Cap 258, is a key piece of legislation in Kenya that establishes the National Social Security Fund (NSSF).
This Act was designed to provide a framework for social security in the country, ensuring that workers have access to retirement savings and other benefits that safeguard their welfare.
The implementation of the NSSF framework has been carried out in phases. Originally, the National Social Security Fund operated under the NSSF Act, Cap 258, which provided for flat-rate contributions. However, this was repealed and replaced by the NSSF Act, 2013 (No. 45 of 2013), which introduced a modernised, earnings-based contribution system.
Also Read: How February 2026 NSSF Changes Will Impact Your Salary
The transition from the old law to the new one was deliberately structured in five phases to gradually increase contribution rates and ease the burden on both employers and employees.
The phased implementation began in February 2023.
Each phase progressively raises the contribution ceiling, aligning savings with Current wage levels. In February 2026, Kenya is entering Phase 4 of the rollout, with one more phase to follow.
Follow our WhatsApp channel for instant news updates
NSSF building in Nairobi. PHOTO/NSSF